NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
An analyst's report on an Indian FMCG company projects revenue growth of 12% for the next year, but the body of the report gives no basis for this figure. Which quality of a good research report is most directly lacking?
The report lacks a reasonable basis and support for its projections. A good research report must explain how forecasts such as 12% revenue growth were derived, using data, trends or assumptions, so readers can assess their credibility. This is distinct from disclosure, layout or summary length.
- AAdequate disclosure of conflicts of interest
- BUse of a consistent font and layout
- CReasonable basis and support for projectionsCorrect
- DBrevity of the executive summary
Explanation
Projections must have a reasonable basis, such as past trends, industry data or management guidance, explained in the report. The missing support for the 12% figure is a gap in substantiation, not a matter of disclosure, formatting or length.
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